Which of the Following Would Be a Good Reason to Choose

question 13

Multiple Choice

Which of the following would be a good reason to choose to make an equity investment in a corporation rather than lending money to a corporation?

• A)The return paid on an equity investment is more secure than the return on debt.
• B)The holder of an equity investment always receives a higher return than a debt holder.
• C)The holder of equity has the same legal entitlement to receive dividends as a debt holder has to receive interest.
• D)The return on equity is riskier than debt but is not fixed and may be higher.
• E)It is easier to assess the price of an equity investment.

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Definitions:

Input impedance

The impedance presented by an electrical device or circuit at its input, affecting how it interacts with the signal sources connected to it.

Ladder Logic

A programming language used in programmable logic controllers (PLCs) that employs graphical elements resembling a ladder with rungs to represent control logic.

Communication Module

Allows the user to connect the PLC to high-speed local networks that may differ from the network communication provided with the PLC.

Discrete DC Output

A digital output in control systems that provides a direct current signal, used to control on/off states.